View Single Post
heyhun77 06:11 AM 04-15-2012
Do you have children of your own? If so, are you paying them on paper for tax purposes for the things they do around the house that help your daycare? You can claim a lot without them having to file their own taxes or even pay taxes and you don't have to actually pay them the money since you are providing food, shelter, toys, activity fees, ect in exchange for their "work". That is one of the only ways to get my net income down each year since I don't spend nearly as much as what comes in. In the end after all the deductions I pay self employment taxes on about $2000 and I have had a full daycare of 8-10 paying clients each year.

Also, we used to use Turbo Tax to do our taxes and if you don't know all of the things to add to the schedule C that aren't typical home office deductions you may be missing a lot of deductions that could bring your income down to much lower which means less tax liability. We ended up having the accountant do her free review of our past 3 years taxes the first year we used her and she amended our taxes (cost us about $300 for 3 years of ammeneded filings) and we got back another $2000 or so. We were missing A LOT of deductions that the program didn't ask us for.
Reply